A Policy Agenda to Encourage Entrepreneurship:
Critical hurdles stand in the way of successful business start-up and stability. First, access to affordable health care for themselves and their employees continues to be the most frequent challenge for small business owners.
Second, increasing access to capital, in forms of both debt/loan capital and non-debt capital, is the second-most cited policy recommendation requested by Oregon’s small businesses. In Oregon, private-public partnerships between banks, nonprofit micro-lending organizations, and the State can mitigate risk and expand access to underserved communities. Individual Development Accounts (IDAs) have also proven to be a valuable source of non-debt capital for small business expansion.
Third, access to market research for business growth and expansion is an additional need cited by Oregon’s small business owners. Many businesses span the divide between the traded sector and the non-traded sector. Access to new markets is the missing link to promoting business expansion and job creation.
Microenterprise and small business development are proven pathways to job creation that generate income, build assets, and support local economies. There are currently a number of opportunities for public policy to help Oregon’s entrepreneurs contend with and thrive in the current economic environment. During times of economic recession, the small business sector functions as an economic shock absorber, providing economic opportunity to downsized and dislocated workers. However, meeting market demand and ensuring growth at the faster pace required by the current economy will require a higher level of private, federal, and state support. This outlay creates significant return on investment and should be more robustly funded to make services available in every Oregon community.